Reviewing Olympus (OTCMKTS:OCPNY) and iRadimed (NASDAQ:IRMD)

iRadimed (NASDAQ:IRMD) and Olympus (OTCMKTS:OCPNY) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

92.3% of iRadimed shares are held by institutional investors. Comparatively, 0.0% of Olympus shares are held by institutional investors. 34.6% of iRadimed shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for iRadimed and Olympus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iRadimed	0	2	3	1	2.83
Olympus	0	0	1	0	3.00

iRadimed currently has a consensus target price of $120.00, suggesting a potential upside of 38.44%. Given iRadimed’s higher possible upside, research analysts clearly believe iRadimed is more favorable than Olympus.

Profitability

This table compares iRadimed and Olympus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iRadimed	26.70%	23.45%	20.36%
Olympus	13.80%	24.30%	9.30%

Dividends

iRadimed pays an annual dividend of $0.80 per share and has a dividend yield of 0.9%. Olympus pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. iRadimed pays out 44.7% of its earnings in the form of a dividend. Olympus pays out 9.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. iRadimed has increased its dividend for 1 consecutive years. iRadimed is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

iRadimed has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Olympus has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Valuation and Earnings

This table compares iRadimed and Olympus”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iRadimed	$83.81 million	13.23	$22.48 million	$1.79	48.42
Olympus	$7.74 billion	2.99	$1.03 billion	$0.82	21.95

Olympus has higher revenue and earnings than iRadimed. Olympus is trading at a lower price-to-earnings ratio than iRadimed, indicating that it is currently the more affordable of the two stocks.

Summary

iRadimed beats Olympus on 13 of the 18 factors compared between the two stocks.

About iRadimed

IRadimed Corp. engages in the development, manufacture, marketing, and distribution of Magnetic Resonance Imaging compatible medical devices. It also provides a non-magnetic Intravenous infusion pump system that is specifically designed for use during MRI procedures. The company was founded by Roger Susi in July 1992 and is headquartered in Winter Springs, FL.

About Olympus

Olympus Corp. engages in the manufacture and sale of precision machineries and instruments. It operates through the following segments: Medical, Scientific Solutions, Imaging, and Others. The Medical segment covers digestive, surgical, and ultrasonic endoscopy as well as endoscopic treatment tools. The Scientific Solutions segment manufactures and sells biological and industrial microscopes, industrial endoscopes, and non-destructive testing equipment. The Imaging segment deals with digital cameras and recording devices. The Others segment includes biomaterial manufacturing and sales business. The company was founded by Takeshi Yamashita on October 12, 1919 and is headquartered in Tokyo, Japan.